Coinbase has announced the launch of their Smart Wallet, nearly a year after WeInvest introduced its own Smart Wallet. This event is significant for several reasons.
Firstly, Coinbase’s entry into the Smart Wallet space serves as a validation of the concept. When a major player like Coinbase commits substantial resources to a new technology, it signals that this technology is crucial for the future. The confidence demonstrated by Coinbase suggests that Smart Wallets are not just a passing fad but a transformative development in the digital financial landscape.
The situation also brings to mind parallels with the proliferation of AI applications. Many early AI apps were dismissed as mere "wrapper apps"— software wrapped around standard AI models. This term can feel condescending, implying these apps lack originality. Yet, in a sense, all software can be seen as a wrapper for underlying components. Even a web app is essentially a wrapper around a database and a browser.
The key difference lies in how effective these wrappers are. The standout AI apps leverage the underlying models in unique ways, enhancing their functionality as these models improve. The same can be said for Smart Wallets. The success of WeInvest doesn’t hinder Coinbase or make it obsolete. Instead, WeInvest can continue to build on top of Coinbase’s infrastructure as well as other smart wallet providers.
In essence, WeInvest is a wrapper app of a smart account. Users can own a Coinbase smart account or any other non-custodial wallet, but they still need functional tools to engage in decentralized finance (DeFi). WeInvest provides these tools. Its value lies in the seamless integration of various smart contract wallets, offering users a flexible and secure way to store and manage digital assets.
Moreover, the trust factor plays a role. Users may feel more secure with established names like Coinbase than with lesser-known startups, even though these smaller companies may be equally or more capable. But openness in the Web3 space means more choices and competition, enhancing overall innovation.
Infrastructure providers like Privy, Alchemy, and others further enrich this ecosystem, supporting the growth of Smart Wallets and related technologies. The synergy between large and small players drives the evolution of these tools, making it an exciting time for digital finance.
Coinbase’s Smart Wallet launch underscores the importance and potential of smart contract wallets, while also paving the way for companies like WeInvest to thrive. It’s not just about the technology, but about how each participant in the ecosystem can contribute to and benefit from a collective advancement.